Public Employees Retirement System floats new idea for rising pension costs

[TexasTowelie]

TIGARD — State and local districts across Oregon learned this week just how much the state’s public pension system will cost their budgets for the next budget cycle starting next July, under rates approved by the Public Employees Retirement System board Friday.

Bend’s three local districts — the city, parks and recreation and Bend-La Pine Schools — along with most other local governments in Oregon face dramatically higher costs to pay for the state’s underfunded pension system.

For the city of Bend, the higher rates will equate to around $1.9 million more per year, or about 4 percent of the entire current budget.

But a discussion emerged during a joint meeting between the PERS Board and the Oregon Investment Council, the two entities overseeing investments for the system, about a new way to help fund the system. They floated the idea of asking the state to issue more than $20 billion in low-interest bonds to help balance out the system.

Read more: http://www.bendbulletin.com/localstate/4703600-151/citing-lack-of-action-pers-floats-new-idea?referrer=carousel2